2023-09-18 | 2023-19200The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation propose to substantially revise capital requirements for large banking organizations and those with significant trading activity. The proposal replaces internal models for credit and operational risk with standardized approaches and updates market risk and credit valuation adjustment risk frameworks to better reflect exposures and reduce complexity. These changes align U.S. standards with Basel III reforms and aim to enhance financial stability by strengthening risk-based capital calculations for institutions with $100 billion or more in assets.